Real Estate Agents can help or hurt a REI

Listing Script

April 15, 2007

To maximize your effectiveness with FSBO’s and to empower you in the FSBO conversations to increase your FBSO hit ratio.

I’ve prepared a lot of material for this call so rather then getting frustrated by trying to write down everything I say, I’ll ask you to write key points and then my entire presentation will be available for free down load.

Questions:

What do you know about FSBO’s?

What is your mind set about FSBO?

What do you say to yourself and others about them?

What are your preconceived notions about who they are, what they are, what they think, their attitude?

What do FSBO’s they say about you?

Does that thinking empower you in the situation?

Does it give you a feeling of freedom with the FSBO’s?

Therefore are you inspired to pick up the phone?

Our System is designed empower you as a sales person.

They way we do that is to help you redesign your business, your personal life and your mental process to create happiness and fulfillment during each real estate task.

What if calling FSBO’s created a feeling of happiness, excitement, energy, enthusiasm…would you feel more compelled to call?

If you called more would you make more money?

If you make more money would you feel more satisfied?

Would you pay off some debt? Save more? Would that give you a greater feeling of security? Would that reduce your stress?

When you are less stressed, are you easier to be around?

So more people have an easier time doing business with you, right? And the cycle begins again.

Write down three words for me:

Expectation

Attitude

Approach

Align you thinking, get on their side.

Mirror emotions

Allow them to be right

Internal verses external

3 Golden FSBO Rules

1. Qualify, qualify and re-qualify by asking lots of questions. Obviously I recommend that you use our script to find out… Are they motivated? Why are they selling?Do they have to, want to or need to move? By when?Why are they selling on their own? (Don’t assume its for commission)What would have to happen for them to list with an agent?How long will they try on their own? ** If they are motivated then getting an appointment is a function of effective lead follow up.Most people call once.

2. Selling is solving a problem. No sale is made unless there is a problem to solve. No one wants to buy a drill; they want the hole that the drill makes.

A FSBO doesn’t want an Agent.They want to get their home sold.They don’t realize they have a problem.They think they can sell their home themselves with no problem. Consistently present the problems of selling FSBO and demonstrate how listing with you solves the problem.

a. Four types of buyers. Just out of curiosity how many calls did you receive last week? How many of those were from Agents? That leaves ___ potential buyers. Out of ___ how many came to see your home? Out of the ones that came to see your home how many gave you an offer? Do you know why they didn’t give you an offer?

There are 4 types of buyers…

The first are serious and in a hurry they may be relocating from another city and have 3 days to find and buy the right home.

Or they may be someone who’s home sold last night and today they need to find their replacement home.

Because they are in a hurry do you think they will be with a Realtor or do you think they are reading every ad in the paper looking for fsbo’s?

Agents have 97% of all the homes on the market listed with them and only 3% are fsbo’s so…the more you think about it, the more it makes sense that the serious and in a hurry buyers work with a Realtor…does that make sense?

The second type are serious but not in a hurry…they may be a first time buyer…proceeding cautiously…wanting someone to hold their hand…or…they may be looking for that perfect home….Did you know that last year the average buyer looked at 54 homes before making a decision?

Naturally these people want an Agent to help them, to guide them and make them feel secure…can you see that?

The third type you may have encountered…they are investors or bargain hunters…preying on fsbo’s that are in a hurry to sell at a discount. What’s the only thing they are looking for?

And of course the 4th type can’t afford to buy…and they will never buy….because they are just looking…We call them looky lous.

In fact Agents don’t put them in their cars because they can’t afford to buy and are not qualified to buy.

So you can see Mr. & Mrs. Fsbo if Realtors have 97% of all the properties that are on the market it only proves that the serious buyers are going to work with a Realtor and what kind does that leave for you?

The investors, bargain hunters and the looky-lous. Right?

b. Share the NAR stats with your FSBO.

c. Nordstrom verses garage sale verses an auction!

d. Pay 3% for the buyer (average agent only does 4 deals)

(do you realize you’d be paying that agent 3% to negotiate against you?

e. Do your own market research, use Our Script to discover

1. Who’s on the market 2. At what price 3. For how long? 4. What do they sell for? 5. How many fall apart once pending? 6. How many list with agents at what price?

3. Use Our CMA Presentation to put the price in the buyers hands and out of the sellers mind.

Teach them to read the CMA like you would.

Giving away your power, demonstrates your power.

Withholding your power, demonstrates your weakness.

Weakness must dominate, power allows.---------------------------------------------------------Note from Brian - this is very strong, and if you are developing a script for Lease Purchase, CFD or Sub2 Land Trust, you need to compete with this as an REI.

1. Did you choose that agent because you were 100% convinced that they could sell your home or were you just a little frustrated with the process? To make sure that you are 100% convinced you are doing the right thing … I can come by tonight at _____ or _____?

2. Do you know how many homes the average agent sells in this area? (Four!) Do you know what the average commission is? ($3000)

If you made ($12,000) a year, would you say your mindset is one of prosperity or desperation?

If you were desperate and someone offered you 3% to bring them a buyer, what would you say?

Have you had any agents agree to your offer?

Now imagine you are that desperate agent … and you have a buyer in your car … (who represents ___ of your total income for the year) …

Are you going to bring that buyer to an unsecured property like yours … where the potential for lawsuits is 2-3 times higher … and you’ll have to do all the work …

or would you rather bring that buyer to a secured property … where you and another agent can work together … to guarantee you get paid …

If you were a desperate agent … which would you do?

I can’t tell you how many times other agents have asked me to pretend to be a buyer for a For Sale By Owner they were prospecting …

Let’s set an appointment today.

3. If I can show you how I will get you 8% more money than you can … selling it on your own … Only a fool would pass that up … right?

All I need is 15 minutes to show you how I do that … Which is better for you _____ or _____?

4. Our company sold 6 properties this weekend … How much money have you already lost in time spent?

Did you know that the market is no longer appreciating? With each week you are gambling thousands of dollars as the market slides backwards …

If I could get you the price you wanted in the next thirty days … would you list with me now? Let’s set an appointment today.

5. What kind of buyers look at For Sale By Owners?

Why wouldn’t a buyer just work with an agent?

Do agents have access to 99% of the homes listed for sale?

Then why wouldn’t a buyer work with an agent?

Buyers that are looking at your home … can’t work with an agent … can I explain?

Agents do their best to work with buyers that are qualified and realistic … Can I tell you who is looking at your home?

Buyers that don’t qualify for a conventional loan and are looking for a special deal to help them get into a house … are you prepared to help finance the home for a buyer or make a special arrangement?

The second kind of buyer looking at your home is an investor … preying on For Sale By Owners … who are frustrated with the process … that they can take advantage of … to get a deal … Have you received any ridiculous verbal low-ball offers?

Let’s set an appointment today … so I can show you how I will expose your property to buyers with the money … and motivation … to make a full price offer … Let’s set an appointment today.

______________________________________

Note from Brian - See how sly the Listing Agent is to the FSBO? "Bad-mouthing" other agents and REIs?

“Mr. & Mrs. Seller … there are two ways to get a home sold once it is listed. They are …

wait for a buyer to show up, or wait for another agent to bring a buyer to it. Or … I can spend my time trying to find a buyer or promote other agents to bring one to us. I’ve chosen the second method … okay?”

“As I’ve written, my objectives are the following ...”

(Read the 3 objectives … or ask them if they had a chance to read them from your pre-listing package.)

“Okay, here are the steps I take to get a home sold!”

Read #1 … “Are you familiar with how our MLS works here locally?” Yes or no … “As you know there are _______ members of our local Board … A small percentage may have a prospect interested in your home at this time … you do want me to submit your home to MLS don’t you?”

Read #2 … “As you can see from our discussion price is always a major factor in selling a home, would you agree that we have to open our market as wide as possible?”

Read #3 … “Our office has a weekly meeting of the agents to promote our listings to each other … is there anything in particular you would like me to tell them?”

Read #4 … “Would you share with me the various features you’d like me to list on the features sheet please?”

Read #5 … “I’ve developed a list of the top 25 agents in the area, the ones like myself who are very active in the marketplace … is there anything in particular you’d like me to tell them? Are there any agents you’d also like me to notify regarding your home being for sale?”

Read #6 … “I’m always looking for agent feedback after showings … to improve saleability. Are there any changes you’re planning to make in the next few days to your home?”

Read #7 … Go on to #8.

Read #8 … “One of my two jobs is to find a buyer for your home so I prospect daily … is there anyone you know that I should be calling regarding the purchase of your home?”

Read #9 … Go on to #10.

Read #10 … “You do want a sign and a lock-box don’t you?”

Read #11 … “Unfortunately you and I can’t control who shows the property or the qualifications of their prospects … I’ll do the best I can to convince all the agents to pre-qualify … okay?

Read #12 … Go on to #13.

Read #13 … Go on to #14.

Read #14 … “Would you mind keeping the cards of the salespeople, so I can pick them up and follow-up? Where would you like to keep them for me?”

Read #15 … Go on to #16.

Read #16 … “Will you generally be available on weeknights or should I call you at the office … when an offer comes in?”

Read #17 … Go on to #18.

Read #18 … “This is the part we all like the best, it’s when you get your 94% and we get our 6% … are there any other questions about what I’ll be doing to get your home sold?”

2. Is there anything else stopping you from listing your home with me tonight? Sign the contract.

3. As a professional service … and to start our relationship … I’ll call the agents you still have appointments with … and cancel the appointments for you … Would you like to know what I’m going to say?

A. “They thought you were terrific … They wanted to give you a chance but … I convinced them to … list with me tonight! If you have any buyers … go ahead and bring them by … the lockbox will be on the door tomorrow morning!”

B. Let’s make a list of who I need to call.

4. Mr. & Mrs. Seller … Based on your time frame … what you want for your home … and the marketing and exposure you need … I’m the right person for the job … Put me to work for you right now … Sign the contract. 5. Have you noticed that all Realtors say basically the same thing?

A. Let me show you how I separate myself from my competition … (Show track record)

B. (Name) … I sell ___ homes per year while my competitors average ___ per year … C. If you were going to hire a doctor to perform surgery … would you hire someone who does it now and then … or … the doctor who’s done it day in and day out for years? … Why? D. I agree! Go ahead and sign the contract.

6. When would you like to receive your first offer? … All we need to do now is simply … sign the contract … so I can help you get what you want in the time you want … won’t that be great?

7. When would you like to receive your first offer? … All we need to do now is simply … sign the contract … so I can help you get what you want in the time you want … won't that be great?

Hi, my name is __________ with __________. I am calling about your property on __________ (address).

And I was wondering … When do you plan on selling that property? (Never) Terrific

1. How long have you owned the property? (Really)

2. I’m curious, how did you happen to purchase an investment in this area? (Interesting)

3. If you ever were to sell when would that be? (Great)

(Only go forward if they say 3 months or less)

Did you realize it could take 1 to 3 month is this market to get a property sold … did you know that? (No) Excellent

Fortunately … to get the property sold and closed … all we need to do now … is simply set an appointment … so I can help you get what you want … in the time you want … won’t that be great? (Fantastic.)

(If out of town client over the phone listing appointment would be scheduled for after the prelisting package including CMA, Completed Net Sheet and Contract has arrived at their home)

4. Are you interested in purchasing any other investments properties in this area? (Terrific)

***If client says not sure if they want to sell, that it depends on CMA or that they need to talk to CPA first ask …

“If the CMA indicates a price that is acceptable to you /or if your CPA approves of the sale, are you ready to list the property right away?”

(If the answer is no, then tell them to call you when closer to being ready to sell so that CMA will be accurate. Then throw them away, don’t waste your time.)

(If the answer is yes - “would you be willing to interview me for the job of selling the property?”)

1. If I had a Cadillac that was worth $15,000 … and I was advertising it for $25,000 … under what conditions would it sell?

A. Only if there were no other Cadillacs available … right? Or … if there was something incredibly unique … that could be valued as being worth $10,000 more than a normal Cadillac … does that make sense?

B. Have I shown you other homes on the market similar to yours? So buyers have other options … don’t they?

C. So the only issue is … Are your extras so incredible and unique … that someone would be willing to pay $____ more … when they could buy the one down the street and upgrade it to their own personal taste … for the same money … Does that make sense?

D. Did you buy this home with all the extras ? … or did you add them for your own comfort and enjoyment?

E. Based on that … what price is the obvious choice?

2. I’d rather receive 10 offers and give us the power to negotiate … than list at your price … and not receive any offers at all … (Name) … let’s start tonight at ___ … Go ahead and sign the contract.

3. I’ll put the home on the market … at that price … for the next two weeks as an experiment … If we have lots of showings and no offers … the market is telling us it’s priced too high … If we have no showings and no offers … then the market is telling us this price is waaay too high!

A. So let’s do this … Sign an automatic price reduction form … and I’ll only submit it … after we agree … the market says it’s too high …

B. Go ahead and sign the contract.

--------------------------------------------------------------------

Note from Brian - See the dominoes falling here? The Lister Salesman shows comps, gets a decision, and is forceful. "What the market is saying" is a cute way of displacing blame, isn't it?

April 14, 2007

1. If you could get what you wanted for this home now … would you put your home on the market today? Then let’s set an appointment today.

2. If I could get you top dollar for your property in the next 30 days, would you list your home with me? Let’s set an appointment today.

3. If you felt absolutely confident … that you could sell your home now … would you sell it? Let’s meet so I can show you how confident I am … that I can sell it for you now!

4. You said you have to move to (place) by (time) … right? Based on the time it takes to get a home on the market … get it properly exposed to the public … and sell it … we need to get together as soon as possible. So, let’s set an appointment today.

5. (Name) I wouldn’t be doing my job if I didn’t ask you one more time for an appointment … I’ve learned over the years that … if I don’t … you might end up with a mediocre agent and lose money … You don’t want to lose money on the sale of your home … do you? I can drop by at (time) or would (time) be better?

6. It will only take me 15 minutes to show you how I get top dollar for the homes that I sell … It would be worth 15 minutes of your time … to be absolutely sure … you were going to receive the most money for your home … you want to net the most money possible … right? Let’s set an appointment today.

7. If you had a proven plan for getting your home sold for top dollar … would you use it? Let’s get together … and I’ll show you that plan … Which is better for you … _______ or _______?

---------------------------------Note from Brian - Do you see how the objection is handled?Can you guess what the objection was?Too busy right now, etc.